How much cash should tom expect to collect during


During 2007, Tom Company actual sales on account for May and June and estimated sales on account for July, August and September are as follows: May (actual), $250,000; June (actual), $300,000; July, $400,000; August,$600,000; and, September, $320,000. 25% of credit sales are collected in the month of sale, 70% in the following month, and 3% in the next following month.

  1. How much cash may Tom expect to collect during July of 2007? $
  2. How much cash should Tom expect to collect during August of 2007? $
  3. How much cash should Tom expect to collect during September of 2007? $.

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